ISLAMABAD: The State Bank of Pakistan (SBP) on Tuesday raised the policy rate by 100 basis points to a record 21% in a bid to control the soaring inflation.
The central bank’s Monetary Policy Committee (MPC) made the key decision at its meeting today, it said in a statement.
The committee noted “There are early indications of inflation expectations plateauing, albeit at an elevated level.”
1/4 Monetary Policy Committee decided to increase policy rate by 100bps to 21% in its meeting today.https://t.co/JeUhdtDFrq pic.twitter.com/6avIFg4S6c
— SBP (@StateBank_Pak) April 4, 2023
Move to help in anchoring inflation expectations: MPC
The MPC said it views today’s decision as an important step towards anchoring inflation expectations around the medium-term target, which is critical for achieving the objective of price stability.
The Committee further observed that Pakistan’s financial sector remains broadly resilient, while economic activity continues to moderate.
